Macau casino stocks rise as investment banks lift earnings forecasts
July gaming revenue surpassed MOP 22bn; sector rebounds on high-end demand.
Key points:
– Macau gaming revenue rose 19% year-on-year in July to MOP 22.1bn (US$2.75bn)
– Forecasts for H2 revenue growth revised from 7% to 16%
– All six Hong Kong-listed Macau casino stocks gained 2.6 to 6.1%
As reported by Macao Daily, investment banks in Macau have responded to strong recent revenue figures by significantly upgrading their full-year and second-half forecasts.
Morgan Stanley now projects full-year gross gaming revenue to grow nearly 10%, up from its previous 5% estimate. It expects annual revenue to reach MOP 248.96bn, with a further rise to MOP 263.9bn in 2026 and MOP 279.7bn in 2027.
According to JPMorgan, strong July figures debunk suggestions that June’s growth was driven solely by major entertainment events. The bank observed sustained demand recovery beginning in the second quarter, particularly among premium mass and VIP segments, which may position Macau as a bellwether for high-end mainland spending.
HSBC echoed these findings and attributed recent growth to increased travel frequency and rising budgets among premium players. The bank expects the upcoming Mid-Autumn Festival and National Day holidays in October to further boost performance and revised its H2 revenue growth forecast from 7% to 16%.
Good to know: Gaming revenue in July has already recovered to approximately 90% of pre-Covid levels, with mass market and slot machine performance exceeding pre-pandemic benchmarks
Investor sentiment surged on the back of these upward revisions.
All six Hong Kong-listed casino operators posted gains on the day. Galaxy Entertainment closed up 3.5% at HK$39.92 (US$5.10), while Sands China rose 2.6% to HK$19.56, both reaching new six-month highs. MGM China added 3.6 % to close at HK$16.84, a three-year high.
Wynn Macau climbed nearly 4% to HK$6.67, while Melco and SJM Holdings rose 6% and 6.1% respectively.
Gambling Insider delivers the latest industry news, in-depth features, and operator reviews that you can trust. Our team combines rigorous editorial standards with decades of specialized expertise to ensure accuracy and fairness. We are committed to delivering clear, impartial, and dependable coverage across the global gambling sector.
